If the IRS is already garnishing my wages at the maximum,are my bank accounts safe?
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If the IRS is already garnishing my wages at the maximum,are my bank accounts safe?
If I were to open a savings account, could they drain that as well?
Asked on June 26, 2015 under Bankruptcy Law, New York
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
A wage garnishment can only be for a maximum 25% of a debtor's wages (in some states less). Once that maximum is reached, no more of the debtor's wages can be taken. However, that doesn't mean that the debtor is free and clear of any additional collection action. Since they are still left with 75% of their income on which to live, their other assets are open to seizure. And if you have a savings account which represents excess income (i.e. you do not need it to meet your daily living expenses), the IRS is going to want it, at least up to the amount it is owed. Once the debt in question has been satisfied then the garnishment and any other attachments to property will be released.
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